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Mediclinic's full year trading in line with expectations except Abu Dhabi

Mediclinic expects a £12mln contribution to full year profit from its stake in Spire Healthcare
health
Mediclinic owns 74 private hospitals and 40 clinics

Private healthcare group Mediclinic International Plc (LON:MDC) said trading for the 2017 financial year is in line with expectations, apart from its Abu Dhabi business.

The company’s businesses in Switzerland, Southern Africa and Dubai all performed as anticipated.

The Abu Dhabi business, however, underperformed due to regulatory changes and certain business and operational challenges.

Mediclinic bought a group of hospitals in Abu Dhabi in 2015 through a reverse takeover of Al Noor Group Hospitals.

However, difficult trading conditions in Abu Dhabi has led to the merged company’s Middle East full year revenue falling 8% to AED3.1bn.

In the group's two biggest regions, Hirslanden, Switzerland and South Africa, revenues rose 3.5% and 6.8% respectively.

The company’s 29.9% stake in Spire Healthcare Group plc (LON:SPI) has also made a contribution to profits.

Mediclinic expects its share of Spire’s annual £53.6mln to be £12mln after adjusting for the amortisation of intangible assets in the purchase price of the equity investment.

The group, which owns 74 hospitals and 40 clinics, bought its stake in Spire for £432mln in 2015.

Shares rose 4.07% to 766.50p in morning trading. 

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